On November 8, 2023, the CFPB and a national bank entered into a
consent order to resolve allegations that the
bank engaged in intentional discrimination against Armenian
Americans who had applied for credit cards with said bank.
Specifically, the CFPB alleges that between 2016 and 2021, the
bank singled out credit card applicants suspected of being of
Armenian descent based on their surnames, applying more stringent
criteria to such applications, "including denying them and
requiring additional information or placing a block on the
account."
The CFPB further asserts that bank supervisors instructed employees
not to discuss the practice in writing or on recorded phone lines
and that employees were taught to lie about the reason for the
adverse actions against the applicants, typically citing suspected
credit abuse. According to the CFPB, these practices violated the
Equal Credit Opportunity Act (ECOA)and its implementing regulation,
Regulation B, and the Consumer Financial Protection Act
(CFPA).
Pursuant to the consent order, the bank has agreed to pay $1.4
million to impacted consumers as well as a $25.4 million
penalty.
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